Natural Gas Price Outlook – Natural Gas Rallies Slightly in Early Thursday Trading

Natural Gas Technical Analysis

The natural gas markets are approaching a significant resistance barrier in the form of $3.50 and of course, the 50 day EMA. This is an area that I think has shown itself to be important multiple times and now that we are stretching towards there, I will be looking for signs of exhaustion to short. After all, the market is one that is going to continue to have to face the fact that although there are colder temperatures expected, I believe next week in this part of the world. This will be short lived though, as we are getting closer to spring in America and Europe. Soon, demand is dropping.

The reality is we’re getting close to the end of winter. And with that being the case, you have to think that demand will drop. It generally does. So, with this being said, the market breaking above there would be very bullish, but I also recognize that it just gives you an opportunity to short from a higher level. I don’t necessarily think that shorting right away makes sense. And after all, we do have storage numbers coming out here after a while, but it certainly is past the bulk of the massive winter buying spree that we typically have.

So, with that being said, I believe that we are living on borrowed time here and it’s probably only a matter of time before you start selling natural gas for the inevitable dump during spring and then the malaise during summer.

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